Exam IIA-CIA-Part2 topic 1 question 79 discussion

Actual exam question from IIA's IIA-CIA-Part2

Question #: 79
Topic #: 1

An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?

A. Examine supporting documentation of subsequent (after-period) cash disbursements and verify period of liability.
B. Send confirmations, including zero-balance accounts, to vendors with whom the company normally does business.
C. Select a sample of accounts payable from the accounts payable list and verify the supporting receiving reports, purchase orders, and invoices.
D. Trace receiving reports issued before the period end to the related vendor invoices and accounts payable list.

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Suggested Answer: C 🗳️

by Nangamso at Aug. 22, 2021, 3:21 p.m.

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Nangamso

1 year, 6 months ago

The objective was to determine the completeness of accounts payable - C test objective will achieve the existence of accounts payable.

upvoted 2 times

John1237

12 months ago

Yes, it's vouching. But is a sample enough to make a statement about completeness?

upvoted 1 times

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